International

Marketing
Session 4
The Impact of Culture

Xuemei Bian
Objectives
 Tocreate awareness of the cultural
factors impacting on:
◦ Customer decision making
◦ Marketing management
 Tointroduce different classifications of
culture
Cultural Environment
Culture is:
 “the collective programming of the mind which
distinguishes the members of one group or
category from those of another” (Hofstede,
1991).

 “alearned, shared, compelling, interrelated set

of symbols whose meanings provide a set of
orientations for members of society. These
orientations, taken together, provide solutions to
problems that all societies must solve if they are
to remain viable” (Terpstra and David, 1991).
Cultural Environment Impacts on:
All aspects of business and marketing related
activities, for example:
 Customer decision making, preferences, needs….
 Relationship with intermediaries
 Managing sales staff
 Acquiring customers
 Managing employees
 …..
A Model of Culture

Hollensen, 2008, p. 141

Example: Ikea Catalogue
Differences in consumer
behaviour across cultures
Hierarchies of needs which shape demand
across product categories
Culture-based values which influence
purchasing behaviour and buying
decisions
Usunier, p. 70.
?????
 ‘Instrumental’ and ‘Social’ Societies
US/Instrumental Japan/Social

Tasks are key in a Behavior Relationships are key in a

competitive environment cooperative environment

Achievement matters Values/Beliefs Affiliation matters

Life is about doing Basic Axioms Life is about being

Source: Andre Laurent, INSEAD

Theory of Reasoned Action
Self-reference criterion (SRC)

refers to one’s unconscious reference to

one’s own cultural values when
attempting to understand another
culture.

7-11
Hall’s Communication
Context

Low-context High-context
cultures cultures

7-12
 The contextual
continuum of differing cultures

7-13
 Comparing low-
and high-context cultures (1)
Characteristic Low-context High-context

Communication Explicit, direct Implicit, indirect

Sense of self Formal hugs, bows,

Informal handshakes
and space and handshakes

7-14
 Comparing low-
and high-context cultures (3)
Characteristic Low-context High-context

Linear, exact,
Time Elastic, relative,
promptness is valued,
consciousness time = relationships
time = money

Nuclear family, Extended family,

Family and
self-oriented, other oriented,
friends value youth loyalty

7-15
 Comparing low-
and high-context cultures (4)

Characteristic Low-context High-context

Independence,
Group conformity,
Values and norms confrontation
harmony
of conflict

Hierarchical,
Egalitarian,
Beliefs and respect for authority,
challenge authority,
attitudes gender roles
gender equity

7-16
 Comparing low-
and high-context cultures (5)
Characteristic Low-context High-context

Linear, logical,
Lateral, holistic,
Mental process sequential,
accepting
and learning problem solving
life’s difficulties

Relationship oriented,
Business/ Deal oriented, rewards
rewards based
work habits based on achievement
on seniority

7-17
 Comparing low-
and high-context cultures (2)
Characteristic Low-context High-context

Indication of
Dress Varies widely,
position in society,
and appearance dress for success
religious rule

Food Eating is a
Eating is social event
and eating habits necessity, fast food

7-18
Question
 Where would you allocate
 China?
 India?
Cross-Cultural Comparison
Hofstede’s (1980) study focused on work-
related cultural values held by employees
of IBM including 50 countries.
4 dimensions:
◦ Power distance
◦ Masculinity
◦ Uncertainty avoidance
◦ Individualism
Power distance
◦ extent to which less powerful members of a
society accept that power is distributed unequally.

Masculinity
◦ dominant values are achievement and success.
“feminine values” such as caring for others and
quality of life are less important.
◦ Masculine countries show a gap between men’s
values and women’s values.
Uncertainty avoidance
◦ extent to which people feel threatened by uncertainty
and ambiguity and try to avoid these situations.

Individualism
◦ people look after themselves and their immediate
family only. In collectivist cultures people belong to in-
groups who look after them in exchange for loyalty.
Swiss website, featuring a girl listening to music on her own (http://www.mcdonalds.ch)
Indian website (late 2003) (http://www.mcdonaldsindia.com)
Discuss

Does a country have a homogenous

culture?
Is culture stable or does it change over
time? Why would it change?
Does a ‘global consumer culture’ exist?
What drives it?
 Category level Example Functional Symbolic meaning
meaning
Superordinate Fast Food Satisfies the need for a Symbolises a fast-paced and
convenient way to have modern urban life style
breakfast, lunch or dinner (GCC)
when time matters (GCC)

Basic Burger Satisfies the need for a May symbolise Western

filling, simple, quick, tasty lifestyle in one culture versus
and hearty meal (GCC) simple meal in another
(GLCC/LCC)

Subordinate Burger varieties Satisfies the need for good Adapted to traditional
value at a reasonable price cultural schema to more
(GCC) easily assimilate product
(LCC)

GLL = Global Consumer Culture; GLCC = Global-Local consumer culture, LCC Local Consumer Culture.
(Source: Merz et al. 2008 –Nexus)
Summary: Elements of Culture
 Language
◦ “a mirror of culture”
◦ spoken and silent language
 Social interaction
◦ how members of society relate to one another
◦ nuclear versus extended family
◦ reference groups
 Religion
 Education
 Value system
Summary: Cultural Differences And Their
Possible Impact On Selected Aspects Of
Consumer Behaviour

 Motivation to own, buy, spend, share …

 Age
◦ valuation of younger vs older people in society,
distribution of purchasing power across generations
 Group influence
◦ individualism/collectivism
 Decision making
◦ family models
◦ children’s influence on decision making
http://teresa.elearning.tvu.ac.uk/BAHospM
anGSMUnit3/Application.htm